Noriyuki SHIKATAFebruary 23, 2011

Deputy Cabinet Secretary for Public RelationsDirector of Global Communications

Prime Minister's Office of Japan

Rise of emerging economies such as China and

India

⇒ major changes to the global power balance

emerging

Impacts of globalization, and increasing role of

ICT, such as Facebook and Twitter

Emerging challenges such as terrorist activities

and the global environment

2

Asia at the center of major tectonic changes, and risks to the security environment remain, such as nuclear development by DPRK.

DPRK ・・・ Sinking the ROK military vessel, Cheonan

Mar.2010

Shelling Yeonpyong Island in Nov. 2010

Uranium Enrichment activities continue

Nuclear, Missile, Abduction issues need to be resolved

3

China

Strengthening of national defense,

transparency lacking, increasingly ambitious

maritime activities, including near Senkaku

islands

Russia

Northern territory issues. Conclude a peace

treaty upon resolving the issue of the attribution.

4

1.Source: “The Military Balance 2010” publications of the U.S. Department of Defense and others (actual

numbers as of the end of FY2009 are shown for Japan).

2.U.S. ground forces in Japan and the ROK are combined figures of Army and Marine Corps personnel.

3.Combat aircraft includes Navy and Marine aircraft.

4.Figures in parentheses show the total number of major units, such as divisions and brigades. Only divisions

are included for North Korea. Military police are included for Taiwan.

5.U.S. 7th Fleet is the number of forward deployment to Japan and Guam.

Notes:

5

1. Japan-US alliance as the cornerstone

2. New development of foreign relations with Asia

3. Promotion of economic diplomacy

4. Efforts to address global issues

5. Japan responding appropriately to the security

environment surrounding it.

These five pillars are formulated with the

"new reality" in mind.

6

Presence of U.S forces in Japan essential.

Japan-US alliance more important in light of

uncertainty and possible instability in the region.

Alliance continues to play a role as “public goods”

fostering peace and prosperity in the region.

We will further deepen the alliance.

Three pillars of security, economics and

exchange of culture and people promoted.

⇒ A New Vision for our alliance

7

8

Relocation of Aircraft

9

10

11

China expanding influence in Asia as with

remarkable economic growth.

⇒ China needs to play a constructive role.

⇒ Both countries have important

responsibilities to bear in the international

community, and will need to enhance

cooperation in wide fields such as economy,

regional stability, and global environment.

⇒ Deepen “Mutually Beneficial Relationship

based on Common Strategic Interests”.

12

Prime Minister Kan issued Statement in Aug.

2010.

We will strengthen cooperation in the area of

security while maintaining due respect for the

viewpoints of the ROK.

Aiming to resume negotiations of Japan-ROK

EPA.

We will build a future-oriented Japan-ROK

relationship.

13

Japan has been at a standstill for 10 years while other

countries aggressively promoted bilateral and

intraregional FTA.

Nov. 2010: GOJ adopted a Basic Policy on

Comprehensive Economic Partnerships.

EPA with India and Peru concluded, will negotiate with

Australia, ROK, Mongolia and EU.

TPP(Trans-Pacific Partnership) Agreement: began consultations with the relevant nations.

GOJ will hold consultations with the US and

others and will reach a decision by around

June.

14

Japan

Mexico

12 EPAs concluded

Malaysia

6 EPA Negotiations ongoing or to be started/resumed

Australia

Switzerland

Korea

Singapore

Thailand

ASEAN(as a whole)

India

Brunei

Vietnam

GCC

Chile

Indonesia

Philippines

Peru

Japan’s FTA/EPA

（As of

Feb.2011）

Mongolia

EU

East Asia Free Trade Area(EAFTA)

【ASEAN + 3】

Comprehensive Economic

Partnership in East Asia(CEPEA)

【ASEAN + 6】

Free Trade Area of the Asia-

Pacific

(FTAAP)

FTA among Japan,

China and Korea

USA

New Zealand

ChiliBrunei

Singapore

AustraliaVietnam Peru

Malaysia

USA

Canada

Mexico

Peru

Chili

Hong Kong

Taiwan

Russia

Papua

New Guinia

Trans-Pacific Partnership(TPP)

Agreement

16

Promoting economic partnerships and revitalizing

agriculture are compatible.

Japanese food culture ➜ “delicious and healthy”

The output of Japan’s agriculture: 4th in the world.

⇒as Japan’s food culture spreads throughout the world,

Japanese agriculture can revitalize as a growing

industry.

Basic Policy on agricultural policy will be

formulated by around June.

Integration and enlargement of farmland is

important means to strengthen agriculture.

⇒ Transition to “senery” industry (multiplier)

17

Concerns over compatibility between tackling global

environment problems and economic growth.

BUT they are COMPATIBLE ➜ The key is INNOVATION.

Japan is a top runner in this area. For example, Japanese

hybrid vehicles(90% global market share) & Japan’s

LED lights.

⇒ They can reduce CO2 emissions by around 40%

Can produce renewable energy through using plants

Japan will aggressively tackle global challenges.

18

“Japan Inward Investment Promoting Program”

launched and 5% Corporate Tax Rate reduction.

Medical care visas to promote “medical tourism” to

Japan.

Deployment of “package” type of infrastructure such as

railroads, water business, nuclear power plants(e.g.

Vietnam).

“Open Skies” agreements with the U.S., ROK and

Singapore.

➜ Make Japan a “Hub for Asian economies”!!

19

Japan’s technologies are used to tackle climate-

change in developing countries.

Mexico reduces electric power consumptions by 20% by using

energy-efficient household appliances.

Malaysia makes use of Japanese climate-control equipment in

factories.

⇒ This sharing of Japanese technologies contributes to

the environment and reduce energy and natural

resources consumption.

Japan will show the global community models to

overcome these challenges.

20

To create new bonds(“Kizuna”) in the region, PM Kan

proposed the “inclusive growth” approach as chair of the

APEC Yokohama as an overall regional growth strategy.

The objective: to give all the citizens of each country the

opportunity to participate in and contribute to economic

growth, and to share its benefits.

In the APEC Growth Strategy we are focusing on such

policies as:

Job creation, support for small and medium-sized

enterprises, enhancements of social security

systems, and support for women, the elderly, and

vulnerable groups in society 21

Will promote Regional Cooperation among

China, ROK, Russia, ASEAN, Australia, India,

and the U.S.

Will make use of APEC, the East Asia Summit,

ASEAN Regional Forum

➜ Strengthen Multi-layered cooperative relations

Japan wish to create an “open network” in the

region.

22

New National Defense Program Guidelines

adopted in Dec. 2010.

Will enhance its readiness and mobility and work

to build a “Dynamic Defense Force” supported

by high levels of technological and information

capabilities.

Will reinforce response capabilities in

southwestern Japan and outlying islands.

Accelerate the upgrading of large-scale patrol

vessels for maritime security.

23